Is it correct and natural to say allow someone a lot meaning to allow someone to do a lot of things? For example:
Parents allow their children a lot these days.
If it's not really natural and correct, what would a native English speaker say?
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No it's not correct because the sentence does not specify the verb being allowed. It makes the sentence feel like it hasn't ended and leaves you hanging.
The closest form to your sentence would be "parents allow their children to do anything nowadays". A native speaker probably wouldn't use the word "allow" at all when trying to make a sentence conveying that meaning.